Strata living, encompassing apartments, units, townhouses, and villas, is fast becoming one of the most preferred property ownership models in Western Australia. With this rise in popularity comes the need for a comprehensive and updated legislative framework to ensure that the management and day-to-day operations of strata properties are transparent, fair, and efficient. Amendments to the Strata Titles Act 1985, which took effect on 1st May 2020, aim to address these needs.
Key Amendments to the Strata Titles Act 1985
Enhanced Buyer Information and Transparency
With the updated strata laws, buyers now benefit from greater transparency and full disclosure when purchasing strata properties. Sellers are mandated to provide essential documentation, including:
- The scheme plan, by-laws, and unit entitlement.
- Minutes from the most recent Annual General Meeting and any subsequent Extraordinary General Meetings.
- Estimated strata levy contributions over the next 12 months.
- The most recent account statements of the strata scheme.
- Any outstanding amounts owed to the strata management company by the current lot owner.
This provision ensures that buyers have a clear understanding of their potential financial obligations and the operational state of the strata scheme. A failure by the seller to comply with these requirements allows the buyer to legally delay settlement or void the contract.
Streamlined Dispute Resolution
The amended Act centralises all strata-related dispute resolutions to the State Administrative Tribunal (SAT), except for the recovery of unpaid levies, which remains with the civil court. This centralisation simplifies and accelerates the dispute resolution process, making it more accessible and less cumbersome for strata owners.
Fairer Scheme Termination Process
Terminating a strata scheme is now subject to new safeguards designed to offer increased protection to owners. For strata schemes comprising four lots or less, a unanimous decision is required for termination. In schemes with five lots or more, the State Administrative Tribunal must ensure that the termination is equitable and that due process is observed. These measures facilitate the redevelopment of older or underdeveloped properties while protecting the interests of existing owners.
Improved Management and By-laws
The new legislation enhances the management of strata schemes and the establishment of by-laws:
- By-laws must not be unfair, discriminatory, oppressive, or unreasonable.
- New lodgement requirements for by-laws ensure greater transparency.
- Introduction of modernised operational options, including electronic communication.
- Defined statutory duties for scheme managers, incorporating educational standards and professional indemnity insurance.
- Implementation of 10-year maintenance plans and reserve funds.
These provisions clarify the roles and responsibilities of strata managers for the first time in Western Australia, fostering professional standards and accountability.
Introduction of Leasehold Strata
Leasehold strata, a new type of land title, offers a fixed term of between 20 and 99 years, promoting more affordable housing options. Each owner within a leasehold strata scheme receives a certificate of title for their leasehold interest, similar to that in freehold strata schemes, but with a fixed lifespan. This innovative approach provides flexibility and affordability while maintaining a familiar living arrangement.
Flexible Staged Subdivision
The updated laws grant developers greater flexibility when rolling out multi-staged strata schemes. These changes aim to protect the rights of lot owners in earlier stages while simplifying the process for developers, making staged developments more viable and streamlined.
Unchanged Important Strata Laws to Note
Despite the comprehensive updates introduced in the Strata Titles Act 1985, several fundamental strata laws remain unchanged, continuing to provide a robust framework for strata management and ownership. These include the mandatory establishment of a strata council, a body corporate composed of representatives from the strata owners, responsible for the daily management and decision-making of the scheme.
Additionally, the requirement for regular Annual General Meetings (AGMs) persists, ensuring transparent communication and collective decision-making among lot owners. The obligation to adequately maintain and insure common property within the strata complex also remains, safeguarding the interests and investments of all owners within the scheme.
These enduring provisions, coupled with the recent amendments, reinforce a balanced and well-regulated strata environment, promoting harmonious and efficient living for all stakeholders.
At Perth Strata Co., we specialise in navigating the complexities of strata management and ownership. Our experienced team is here to help you understand how these new laws affect your strata scheme. Contact us for expert advice and support in managing your strata properties effectively. Click here to read the five-year review of the Strata Titles Act.
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